Services as a Software: Unlocking the US$3–5 trillion Opportunity

Artificial intelligence is transforming business operations. The first wave introduced large language models and generative tools, such as ChatGPT. The second wave focused on infrastructure, chips, data centres, and cloud platforms. Now, the third wave is underway, bringing even greater disruption as business services themselves evolve into software. 

The scale of this transformation is significant, with estimates suggesting it represents a US$3–5 trillion opportunity in the coming years. However, the most promising innovations are not in the public market spotlight; they are in private markets, where venture capital, growth equity, and private equity are driving the companies that will lead the next wave of disruption. 

AgileIntel examines why services as software present such a compelling opportunity, the central role of private markets, and how investors can navigate this new frontier. 

Why “Services as Software” is Different 

Finance, HR, legal, customer support, logistics, and healthcare represent trillions in global expenditure. Many of these services remain manual, inefficient, or fragmented. 

Artificial intelligence now allows companies to transform human-intensive workflows into intelligent, automated platforms. This is not merely outsourcing 2.0; it represents a reinvention of service delivery and consumption. 

• Customer support is transitioning from call centres to AI-driven chat platforms. Zendesk and Intercom are already incorporating generative AI to reduce response times and enhance customer satisfaction. 

  
  

• Recruitment and HR are evolving as platforms like Eightfold AI leverage machine learning to match candidates with roles at scale. Rather than human recruiters screening resumes, algorithms identify the best fits. 

  
  

• Legal services are being transformed by companies like Harvey AI, which assists law firms in generating drafts and conducting research using AI trained on legal data. Law is no longer solely about human analysis; it is becoming software-enabled. 

  
  

The common theme is that software does not simply assist humans; it increasingly replaces entire layers of human activity, converting services into scalable platforms.

Why This Is a Multi-Trillion Dollar Market 

The global business services market is forecast to grow rapidly, with a CAGR of 21% from 2023 to 2032. Many of these services remain labour-intensive. If AI can capture even a fraction of these workflows, the impact could easily reach trillions. 

• Efficiency gains: AI can reduce costs by lowering reliance on human labour. For instance, McKinsey estimates that generative AI could automate work activities consuming 60 to 70% of employees’ time. 

  
  

• Speed and scalability: Services that once took weeks can now be delivered instantly. 

  
  

• Accuracy and compliance: AI reduces human error in regulated sectors like healthcare, finance, and law. 

  
  

• New value creation: Beyond cost savings, AI generates new products and services, such as personalised financial advice or predictive healthcare. 

  
  

This combination of savings and new revenue streams explains why investors view services as software as a US$3–5 trillion opportunity. 

Why Private Markets Are Key 

Public markets often spotlight the giants of AI infrastructure. For example, Nvidia leads the market for GPUs that power AI training, while Microsoft and Alphabet integrate AI into productivity tools. These narratives attract attention. 

However, the most disruptive services-as-software companies remain private. Data indicates that as of early 2025, 95% of global software companies were privately held, including many startups developing AI solutions for sectors like healthcare, education, and logistics. 

Private markets are crucial because: 

• Capital intensity: Developing AI solutions requires significant upfront investments in data, infrastructure, and model development. 

  
  

• Long time horizons: Private equity and venture funds can adopt the multi-year perspective necessary for innovation to mature. 

  
  

• Strategic guidance: Investors often provide not just capital but also industry expertise, governance, and customer access. 

  
  

• Early access to growth: By the time a company goes public, much of its steep growth trajectory may have already occurred. 

  
  

Where the Opportunities Lie 

Investors exploring services as software can consider three broad categories: 

• Vertical AI platforms: These are designed for specific industries such as healthcare, biotech, or finance. They leverage domain-specific data and expertise to deliver highly specialised solutions, often creating stronger competitive moats and faster adoption. 

  
  

• Horizontal AI platforms: These solutions apply across industries, targeting common functions like HR, finance, and customer relationship management. Their broad applicability allows them to scale quickly and impact multiple sectors simultaneously.

  
  

• Agentic AI systems: These are autonomous agents capable of reasoning, planning, and executing tasks with minimal human input. They are emerging in areas such as supply chain management and financial services, where real-time decision-making and execution create significant efficiency gains. 

  
  

Real-World Examples of Services as Software 

Customer Service: Companies like Zendesk, a U.S.-based customer service software company, offer ticketing, messaging, and helpdesk solutions. Freshworks, an India-founded SaaS provider, delivers customer engagement and IT service management tools. Both have built SaaS models to streamline customer support. 

AI-first platforms such as Ada, a Canada-based company specialising in automated customer service, and Forethought, a U.S.-based startup focused on AI-powered customer support solutions, use generative AI to resolve queries autonomously. Some firms report over 50% reductions in ticket resolution times. This highlights the efficiency gains possible when services become software. 

Human Resources: Workday, a leader in cloud HR and finance software, is integrating AI to automate payroll, recruitment, and performance management. Startups like Eightfold AI, a talent intelligence platform, focus on talent acquisition, using AI to match candidates to roles more effectively. 

Legal and Compliance: Relativity, a legal technology firm, employs AI to review documents and flag risks. Generative AI is also utilised for drafting contracts and analysing regulatory filings. 

Healthcare: Tempus, a U.S. healthcare AI company, leverages machine learning to personalise cancer treatment plans. In diagnostics, AI is already reducing human error rates and improving outcomes. 

Each of these examples illustrates how AI is evolving services into scalable, software-like products. 

Risks Investors Should Watch 

Every opportunity comes with challenges. Investors should carefully evaluate: 

• Scalability: Can the platform manage enterprise-level demand without issues? 

  
  

• Regulation: Sectors like finance and healthcare face stringent compliance requirements. 

  
  

• Trust and adoption: Employees and customers must trust AI to make sensitive decisions. 

  
  

• Competition: As more capital flows into AI, valuations can rise rapidly, increasing the risk of overpaying. 

  
  

How Investors Can Approach the Market 

• Diversify across verticals and horizontals rather than focusing on a single sector. 

  
  

• Prioritise teams with domain expertise. Success requires more than technical AI skills; industry knowledge is essential. 

  
  

• Evaluate data moats. The quality and exclusivity of data often determine a company’s defensibility. 

  
  

• Seek alignment with long-term enterprise needs rather than chasing short-term trends. 

  
  

Conclusion 

Services as software is more than just a buzzword; it represents a significant shift in how business services are delivered. By embedding AI directly into workflows, companies can scale more rapidly, operate more efficiently, and create entirely new forms of value. 

For investors, the potential is too substantial to overlook. A US$3–5 trillion opportunity is emerging, with the most transformative companies still in the private market. 

At AgileIntel, we believe this is where the next generation of market leaders will arise. Investors who position themselves early, balance opportunity with risk, and focus on long-term value creation will be best positioned to harness this wave of AI-driven disruption.